Managed Floats Are

question 95

Multiple Choice

Managed floats are

• A) generally used in the very short run to prevent large,sudden changes in exchange rates
• B) used most often in the long run to maintain equilibrium exchange rates
• C) used most often in the short run to keep a country's currency from depreciating
• D) considered unnecessary by most free market economies
• E) most often used by the central banks of European countries to prevent depreciation of their currencies

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Definitions:

Chi-square Value

A statistical measure used in the chi-square test to compare observed data with data expected to be obtained under a specific hypothesis.

One-tailed Test

A statistical test in which the region of rejection is on only one side of the sampling distribution.

Level of Significance

A predetermined threshold in hypothesis testing, below which the null hypothesis is rejected, indicating statistical significance.